Norwegian Competition Authority blocks Eimskip–Nor Lines acquisition
The acquisition would have significantly impeded effective competition in the market for transportation of frozen fish with reefer vessels from Northern Norway to Northern Europe.
The Competition Authority is obligated to block acquisitions that harm competition. Eimskip and Nor Lines are close competitors and collectively hold a substantial market share in today's market, says Director General Lars Sørgard.
The Authority's decision was issued today. The acquisition involves the two largest players in the market for shipping frozen fish from Northern Norway to Northern Europe. The parties' customers are fish producers who procure shipping services for their frozen fish. The majority of the frozen fish is exported.
The market for transportation of frozen fish with reefer vessels from Northern Norway to Northern Europe already has a low number of market players.
"Our assessment is that an acquisition would result in reduced competition, which would make it possible for Eimskip to increase prices or reduce quality for its customers, says acting Director Øyvind Nilssen." ■